YTO Express Earnings: Shares Fairly Valued, as Pricing Power, Cost Savings Much Better Than Expected
We think YTO Express has demonstrated it has more pricing power versus peers STO Express and Yunda Holding, thanks to its continuous efforts to digitalize and standardize the operations of all franchisees. In both the fourth quarter of 2023 and first quarter of this year, although YTO’s express revenue per parcel dropped significantly less than peers, its sequential market share change outperformed STO and Yunda. We expect to see greater-than-expected market share, revenue, and cost savings as these efforts continue to roll out. These measures include the adoption of customer service and financial system applications by all franchisees.